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News Indirect Tax-GST

  • Oct 18, 2018
  • Composition scheme biz need not file purchase details while filing GST quarterly returns

    Businesses opting for composition scheme under GST need not file details of purchases made from their vendors at the time of filing quarterly return GSTR-4, the Finance Ministry said Wednesday. In a clarification, the ministry said there have been doubts regarding the manner of filing the quarterly return by composition dealers in Form GSTR-4 in the absence of auto-population of the details of inward supplies received from registered suppliers.

  • Oct 18, 2018
  • Guidelines for deductions & deposits of TDS by DDO under GST

    Section 51 of the NGST Act 2017 provides for deduction of tax by the Government Agencies (Deductor) or any other person to be notified in this regard, from the payment made or credited to the supplier (Deductee) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees. The amount deducted as tax under this section shall be paid to the Government by deductor within ten days after the end of the month in which such deduction is made along with a return in FORM GSTR-7 giving the details of deductions and deductees. Further, the deductor has to issue a certificate to the deductee mentioning therein the contract value, rate of deduction, amount deducted etc.

  • Oct 17, 2018
  • Companies rush to match input tax credit with vendor returns

    Indian companies are scrambling to retain hundreds of crores of input tax credit for last financial year under the Goods and Services Tax (GST) regime that it could lose if it fails to substantiate the claim with vendor returns. The deadline to file this claim is October 20, while vendors can file their sales return till October 31. This has created a situation where vendor returns are not available for reconciliation.

  • Oct 17, 2018
  • Free IPL tickets to attract GST! 3 recent rulings by AAR on Goods and Services Tax you must know

    Even a year after the implementation of the Goods and Services Tax (GST), the rulings of the quasi-judicial body — Authority for Advance Ruling (AAR) — continue to clear the confusion over several provisions of the new indirect tax regime. Whether GST will be applicable to coaching classes or to cars used for demonstration purposed, the AARs, which are present in every state, have given rulings on these kinds of stand-alone cases.

  • Oct 13, 2018
  • Why the GST audit can be seen as an opportunity, not just a futile compliance exercise

    The goods and services tax (GST), which was implemented on July 1, 2017, has been one of the biggest indirect tax reforms India has ever seen. The initial year of GST has not been smooth. Typically, as a part of the GST implementation process, taxpayers across the nation carried out series of activities, including taking tax positions, extensive upgradation of ERP, and alteration of processes around transactions to be GST compliant.

  • Oct 12, 2018
  • Some GST-laden private banks up charges on remittances

    Private banks that are being charged goods and services tax on transactions undertaken by their business correspondents are starting to increase their charges on remittances, two people aware of the development said. At least two large private sector lenders in the domestic money remittance business have increased charges by at least 20 basis points, they said, declining to name the banks.

  • Oct 11, 2018
  • No centre-state wall: Officials handling GST can assess all

    The government has clarified that both the state and central authorities handling the goods and services tax have enforcement powers over all assessees in a state, triggering fears that the industry may get caught in a crossfire between the two. The central tax and state tax authorities are allowed to initiate intelligence-based enforcement action on the entire taxpayer base, irrespective of the administrative assignment of the taxpayers to any authority, Central Board of Indirect Taxes and Customs member Mahendra Singh wrote to officials, citing the minutes of a meeting of the Goods and Services Tax Council.

  • Oct 10, 2018
  • Rate cut must be passed on for each packet size, says GST authority

    Companies or dealers may have to cut prices of each stock keeping unit (SKU) of their products to pass on the benefits of any lower goods and services tax (GST) rate. This comes from an order of the national anti-profiteering authority (NAA) in a case related to a Maggi noodles (Nestle’s) dealer. A retailer of Maggi had alleged that despite reduction in the GST rate from 18 per cent to 12 per cent in November 2017, the base price of a 35g pack, also known as the Rs 5 (MRP) pack, was increased to bring it at par with the pre-rate change price, including taxes.

  • Oct 04, 2018
  • PIN codes made mandatory for generating e-way bill on GSTN

    Tightening the norms for issuance of e-way bill, the GST Network has made it mandatory for businesses and transporters to mention PIN codes of places of loading and unloading of consignments. Quoting of PIN codes, according to officials, will help in calculating the correct distance and determine the validity of the electronic way or e-way bill, which is used by businesses to transport goods worth over Rs 50,000 both within and outside a state.

  • Oct 03, 2018
  • Festive season likely to drive GST collections past Rs 1 trillion in Nov

    The finance ministry expects the GST collections to cross Rs 1 trillion in November and December on account of festive season demand and the anti-evasion measures initiated by the revenue department. The Goods and Services Tax (GST) revenue rose to Rs 944.42 billion in September and officials feel it could surpass the landmark 1 trillion on increased demand during festival season."With the current trend for GST mop-up, it is expected that the monthly collections could again touch Rs 1 trillion around November and December," an official said.

  • Oct 01, 2018
  • GST mop-up rises to Rs 94,442 crore in September

    GST mop-up rose to Rs 94,442 crore in September, from Rs 93,690 crore in the previous month, the Finance Ministry said Monday. As many as 67 lakh Goods and Services Tax (GST) returns were filed in September. Of the Rs 94,442 crore collected last month, Central GST (CGST) mop-up is Rs 15,318 crore, State GST (SGST) is Rs 21,061 crore, Integrated GST is Rs 50,070 crore (including Rs 25,308 crore collected on imports) and cess is Rs 7,993 crore (including Rs 769 crore collected on imports), the ministry said.

  • Sep 29, 2018
  • GST Council Meet: Extra tax likely to support Kerala

    The Goods and Services Tax (GST) Council on Friday set up a committee of seven state finance ministers to examine the legality and recommend the methodology for levying an ‘additional tax’ to raise revenue for floods-ravaged Kerala. The Council also reviewed the GST revenue collections by the states at its 30th meeting, and found that though collections have improved marginally in the current finacial year, the states’ overall GST revenue deficit is still a worrisome 13%. Finance minister Arun Jaitley hinted that the overall GST revenue (Centre and states) this year might be short of the nearly `13.2 lakh crore overall (GST+compensation cess) target.

  • Sep 29, 2018
  • Rs 170 cr deposited in consumer welfare fund by cos for not passing on GST benefits

    As much as Rs 170 crore has been deposited into the consumer welfare fund by several entities for not passing on the benefits of GST rate reduction to consumers, Kerala Finance Minister Thomas Isaac said Friday. The Central GST Act provides for creation of a Consumer Welfare Fund wherein undue benefits made by businesses under the GST law have to be deposited, in case it cannot be passed on to the identified recipient. "Action has started (on profiteering complaints)... Rs 170 crore has been paid in the Consumer Welfare Fund by the companies and many cases are being investigated," Isaac told reporters here.

  • Sep 29, 2018
  • GST Council focuses on missing collection target every month

    Worried about a revenue shortfall, the Goods and Services Tax Council took stock of collections under the new regime, which have missed target every month this financial year except in April, although the average gap has narrowed since last year. Five northeastern states and Andhra Pradesh were the only states with surplus revenue, while all the others are staring at a shortfall and will have to be compensated by the Centre.

  • Sep 29, 2018
  • GST Council discusses revenue shortfall, sets up GoM on ‘calamity tax’

    The GST Council Friday set up a seven-member ministerial panel under Bihar Deputy Chief Minister Sushil Modi to examine the legality of imposing a new tax on certain goods and services to raise resources for natural calamity-hit states like Kerala. The panel, headed by Union Finance Minister Arun Jaitley and comprising representatives of all states and UTs, also took stock of the shortfall in tax mop up by majority of the states under the new indirect tax regime.

  • Sep 28, 2018
  • GST Council to take up additional cess for Kerala today

    In its 30th meeting on Friday, the Goods and Services Tax Council will discuss multiple proposals for levying additional cess to help flood-ravaged Kerala recoup revenue losses. The council will also take stock of the GST revenue collection, which declined for July compared with the previous months this fiscal, officials said. However, a cess to cover for losses due to natural calamity would need a change in the law, an official said. He added that the methodology for such a move was complex, and a decision on the same wasn’t expected to be made on Friday.

  • Sep 26, 2018
  • IGST, cess relief to exporters extended till March

    The government has extended the exemptions granted to export oriented units and software technology parks from payment of integrated goods and services tax (IGST) and compensation cess on imports by six months till 31 March 2019. The exemption from IGST and cess granted to these units was slated to come to an end on 30 September. The Central Board of Indirect Taxes and Customs (CBIC) said that these levies will be applicable on these units from April 2019.

  • Sep 26, 2018
  • Mineral mining rights liable to GST: AAR

    Mineral mining rights granted by the government will be liable to the goods and services tax (GST) at the rate applicable on the supply of the extracted raw material, the Haryana Authority for Advance Rulings has ruled. The decision should ease the mining sector’s tax burden and clear the ambiguity over whether such rights are liable to be taxed at the rate applicable to the supply of these minerals or at a higher residual rate of 18%.

  • Sep 25, 2018
  • GST relief for MSMEs: Disappointing news – Sector may not get more benefits before 2019 polls

    A persistent shortfall in the goods and services tax (GST) collections has forced the GST Council to move slowly on the plans to give more sops to micro, small and medium enterprises (MSMEs). Till the next elections, the GST structure might not see any major change, sources said, adding that even the new return filing system may have to wait till the polls are concluded and the new government assumes office. The government reckons that the rolling out the proposed additional sops to MSMEs — one suggestion was to refund a portion of the taxes paid by these units to reduce their tax liability without upsetting the GST chain — closer to elections could create technical hassles.

  • Sep 25, 2018
  • CERC allows GST as 'Change in Law' for solar projects, recovery of tax paid

    Putting an end to the confusion over the cost of new solar power projects under the goods and services tax (GST) regime, the Central Electricity Regulatory Commission (CERC) has allowed it to be covered under the 'Change in Law' clause of power contracts. The GST paid by the project developers can be recovered as a separate element on "one-time basis in a time-bound manner". The order comes in response to the applications filed by Azure Power and Prayatna Developers, a subsidiary of Adani Power. Adani had petitioned CERC to declare GST as a change in law so that future bids could consider this in their cost structure.